Key Takeaways
- RBI enhances transaction limit for tax payments through UPI to Rs 5 lakh.
- The enhanced UPI transaction limit will ease tax payments by consumers.
- RBI proposes to introduce ‘Delegated Payments’ in UPI, allowing primary users to make UPI transactions up to a limit without a separate bank account linked to UPI for secondary users.
New Delhi: In a move that will enable a higher amount of tax payment using UPI, the Reserve Bank of India has enhanced the limit for tax payment through UPI to Rs 5 lakh from the existing limit of Rs 1 lakh.
Currently, the transaction limit for UPI is Rs 1 lakh, except for certain categories of payments, which have higher transaction limits. It has now been decided to enhance the limit for tax payments through UPI from Rs 1 lakh to Rs 5 lakh per transaction, RBI Governor Shaktikanta Das said while announcing the Monetary Policy.
This will further ease tax payments by consumers through UPI.
In another important decision, the RBI has proposed to introduce the facility of “Delegated Payments” in UPI.
This would enable an individual (primary user) to allow another individual (secondary user) to make UPI transactions up to a limit from the primary user’s bank account without the need for the secondary user to have a separate bank account linked to UPI.
This will further deepen the reach and usage of digital payments, Das said.
